Carbon Capture

The number of companies committing to “net zero” emissions within the coming decades is growing rapidly. These commitments are in reaction to a number of factors—including ESG considerations, tax and other government incentives, carbon offset credits, grant programs, and broader climate concerns. For a number of industries, capturing and sequestering CO₂ that otherwise would be emitted into the atmosphere is a necessary means for meeting these carbon reduction targets.

Traditional energy companies not only often generate significant volumes of CO₂ emissions, but they also are well positioned to design, build, and operate the infrastructure necessary to capture, transport, and dispose of CO₂.

V&E is well suited to guide traditional energy clients and new entrants in the burgeoning area of carbon capture projects. Our firm brings a multidisciplinary team with substantial experience in carbon capture and related projects to help clients implement these initiatives:

• Project Structuring and Development
  • Agreements and market terms for project development (including EPC and O&M contracts, CO₂ capture and sequestration agreements, and pipeline transportation), securing necessary reservoir and surface rights, and other infrastructure requirements
  • Ranked Band 1 by Chambers USA in Projects: Power & Renewables: Transactional (2019–2025) and Projects: Oil & Gas (2014–2025)
• Project Finance
  • All elements of project finance for any carbon capture and sequestration project facilities (such as pipelines) on both lender and creditor side (sponsors, developers, and lenders)
  • “Americas Deal of the Year” Winner – Project Finance International, 2024
• Tax/Tax Equity/45Q
  • Utilization of Section 45Q income tax credits (see our summary of the final regulations governing the rules on Section 45Q credits)
  • Structuring tax equity investments for both tax equity investors and project sponsors
  • Ranked by Chambers USA in Projects: Renewables & Alternative Energy in 2025, recognizing our trail-blazing efforts with renewables tax equity financings
• Permitting and Regulatory
  • Compliance with and permitting under the Safe Drinking Water Act’s Underground Injection Control (UIC) program, including for Class II (for EOR) and Class VI (for long-term sequestration) wells, and securing permits from USEPA as well as state regulatory authorities
  • Advice on other federal and state regulatory matters relating to pipelines, air emissions, and other energy infrastructure matters
  • Ranked nationwide by Chambers USA in Environment (2013–2025)
• Energy
  • Named “Energy Group of the Year” by Law360, 2021–2024
  • Ranked Band 1 in Energy: Oil & Gas (Transactional) (2013–2025) and named “Energy & Projects Law Firm of the Year” in 2023, both by Chambers USA
  • Midstream
    • Broad client and deal list handling midstream activities also involved in carbon capture projects, including gathering, processing, treatment, transportation, and storage of hydrocarbons and other products (e.g., water and other byproducts)
  • Joint Ventures
    • Possess one of the strongest energy infrastructure joint venture resumes in the U.S., with experience on behalf of strategic investors, private equity funds and portfolio companies, preferred equity providers, infrastructure funds, and other investors
    • Advice on complex co-ownership issues, including decision-making, exit rights and limitations, distribution waterfalls, project expansions, and partnership tax matters
  • Upstream
    • Knowledgeable on state and federal statutes affecting upstream/sequestration aspects of carbon capture projects
    • Deep bench of lawyers whose core practice is dealing with surface and mineral ownership issues and associated agreements

• ESG
  • Navigating carbon offset credits and emissions accounting
  • Advice on federal and state carbon capture incentives
  • Advice on management of risks related to net-zero targets, GHG emission reductions strategies, and public disclosure of same, including SEC oversight
• Insurance Products
  • Collaborating with major insurers to develop insurance products addressing tax credit recapture and other risks inherent in carbon capture projects